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ITC e-Choupal

iksaanaaMo ko iht maMo ¸iksaanaaoM ka Apnaa

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Agriculture Scenario in India
• India has second largest arable land in the world • One of the largest domestic consumption base • Attractive emerging export market • Diverse climatic zones allow growing of a variety of crops through the year • Growing demand for processed food
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About ITC …..
• ITC is one of the largest corporation with its presence in Tobacco, Hotels, Paper Boards, Foods, Fashion Retailing And Commodity Export • ITC international business division was created in 1990 as an Agri Trading Company engaged in exports of a range of agriculture commodities • They believe in using a business model that does good to society and helps in improving the standard of living of Stake Holders
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e-Choupal Concept
• E-Choupal is a virtual market place where farmers can transact directly with the processor and can realize the better price for the produce. • Provides for transparent transactions by free flow of information • Elimination of some levels of intermediaries • Connects large / small crop producers and small/ large users
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Limitations of Mandi System
• It is inefficient as there are no resources to analyze price trends • The timing of the sale may not result in the optimal price for the crop • Also the delayed sale time at the auction makes it more difficult for the farmer to sell his product at some other Mandi • Farmers also bear the cost of bagging and weighing
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Continued…..
• The inspection process does not provide incentive to the farmer to invest in better seeds and better practices (water project) • The key problem is the agents control the market asymmetrical information flow (price, quality) • Mandi system Doesn’t Give the assurance of Sale of Crop on a Particular day, that Increases the Transportation cost.
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The desired necessities for e-Choupal
• Re-engineer, Not Reconstruct • Caters to the entire community needs and not focusing on just one necessity • Fusion of agriculture and IT • Risk assessment and mitigation • Moving away from government shadow

The Impact …
• ITC procures 80% of its procurement via Web Channels • In 9 months ended Dec 2006 ITC-IBD clocked revenues of Rs2762.63 Cr as per the turnover of 9137.17Cr • It covers over 31000 villages, reaching out to 3 million farmers through 5200 kiosks • Adding Six New Choupals Every Day Intend Scaling up to 100,000 Villages in 15 States by 2010.
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